Quote Originally Posted by islaydarkblue View Post
According to the SohoGreen website up to between 60% and 70% of the value of the site can be borrowed.
However the site must be independently valued by a member of RICS.
If the site was valued at £1 million then between £600k and a maximum of £700k could be borrowed.
The interest rates quoted are between 0.75% and 2% per month which equates to between 9% and 24% per annum.
A loan of £700k @ 9% per annum equates to a repayment of £63k per annum in interest alone while the maximum 24% would result in interest of £168k being paid per annum in addition to the repayment of the original £700k.
What would the borrowers be using the funds for? I don't know how much planning consent costs. Is there any sort of industry benchmarks or guidance? Suppose a project cost £5m, is there an industry wide price list that says planning consent costs are a percentage of the capital cost? Say 0.5% which would work out at £25k?